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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
DIESEL
Stocks of diesel-type fuel in northwest Europe are set to fall in coming months in line with the seasonal normal trend according to Wood Mackenzie. Inventories are up year-on-year but currently lower than historical normal.
- “The outlook for Europe diesel/gasoil supply is tight in our current forecast, driven by the lower diesel/gasoil yields expected from lighter crude slates, the shift to jet yields, and unplanned refinery outages,” said Emma Howsham at Wood Mackenzie. “Demand is expected to increase month-on-month to November.”
- OECD Europe’s yields of diesel-type fuel in July was more than 1.6% lower than the historic average due to a switch to less dense crude after Saudi cuts, she added.
- Diesel margins have rallied since early July with the European Gasoil-Brent spread up from around 17.5$/bbl to over 36$/bbl
- Unexpected supply disruptions, cold weather driven demand or surprisingly strong economies are all upside risks amid the low global inventories. The main diesel supply concerns are in Europe and the US Atlantic Coast according to FGE.
- “There is a worry that stocks will not build sufficiently before October, and we will then start seeing draws from what threatens to be a low base.” said Eugene Lindell at FGE.
- EU Gasoil-Brent down 0$/bbl at 36.45$/bbl
- US ULSD crack up 0$/bbl at 51.58$/bbl
Source: Wood Mackenzie / Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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